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NRW Holdings announces $780m contract win

NRW Holdings announces $780m contract win

Mining services company NRW Holdings CFOWorld has revealed it has won a contract worth $780 million to support the Middlemount Coal Project.

Middlemount Coal Pty Ltd has awarded NRW with a five-year deal to provide services for the Queensland project.

NRW said it expects to accrue capital expenditure in the range of $120 million to $145 million over a period of 12-18 months.

The works will be undertaken using equipment procured from the $84 million acquisition of Comiskey Earthmoving from owner Joe Comiskey in a deal announced on March 11.

NRW separately announced a $70 million placement and up to $10 million share purchase plan to ensure the company's conservative gearing is maintained following the Comiskey Earthmoving transaction.

The underwritten placement will be offered at an issue price of $2.74, a 4% discount on last trading price. The company said it will provide more details on the share purchase plan soon.

NRW also revealed that although it was on track to meet its FY11 revenue target of $700 million – which would be a 15% increase from FY10 – it expects profit for the year to be at the low end of the broker forecast range of $40 million to $45 million.

Adverse weather conditions have impacted productivity, and delays in civil contract awards led to an unerutilisation of operational capacity, the company said.

NWH shares entered a trading halt on Thursday due to the announcements, and were last trading at $2.850.

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Tags GuidanceASX:NWHNRW Holdings Ltdequity raisingminingbusiness deals

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